TIDMLION
RNS Number : 3261J
Lionsgold Limited
29 March 2018
Lionsgold Limited
Half Year Report
for the six months ended 31 December
2017
Lionsgold Limited ("Lionsgold", "LION" or the "Company"), the
India-focused gold exploration company with additional exploration
assets in Finland and an interest in a physical gold online trading
platform, announces its unaudited results for the six months ended
31 December 2017.
Highlights for the period:
-- New equity capital raised during the period totalling
GBP1,171,000 through the exercise of warrants and management
options and a part placing;
-- Increased shareholding to 21.15% of leading India gold
exploration and mine development company Geomysore Services (India)
Private Limited ("Geomysore");
-- Final results of feasibility study completed at Geomysore's
most advanced project, Jonnagiri, resulting in 'decision to mine',
and new Mining Lease targets identified, located in the southern
part of the Kolar Gold Field;
-- Increased shareholding to 28.3% in Finnish gold joint venture
company, Kalevala Gold Oy ("Kalevala);
-- Kalevala added 277.7km(2) prospecting licensed area and
received approval for 200 tonnes of gold ore for equipment
testing;
-- Increased shareholding to 55% majority ownership of TRAC
Technology Limited ("TRAC") prior to design of Goldbloc by TRAC's
CEO and LION's CEO;
-- Digital gold currency, Goldbloc, announced to market enabling
physical gold to be directly owned within a bank account (product
targeted for release Q2 2018);
-- E-Money (electronic money) Licence received from the FCA
(Financial Conduct Authority) permitting TRAC to act as a payment
or e-money institution (FCA reference number 902012);
-- Non-Executive Chairman appointed to the Board on 23 November
2017 adding technical geological and operational knowledge;
-- Former Rio Tinto Chief Executive Energy & Minerals who
was head of all Rio projects in India for over eight years, joined
Lionsgold as part-time Global Strategy Consultant;
-- Cash at bank at the end of the period GBP1.16m;
-- Over GBP1m received post period end from warrants exercised
and balance of December 2017 placing;
-- Post period end, Lionsgold acquired 12.5% shareholding of
banking and compliance technology platform provider, Railsbank
Technology Limited ("Railsbank") and secured a 3-year exclusive to
utilise the platform to enable physical gold and gold derivative
products in bank accounts.
Board changes
On 23 November 2017, Luke Cairns stepped down as Executive
Director and David Price was appointed as Non-Executive
Chairman.
Key financials
The loss after tax for the period was GBP542,630 (unaudited)
compared to GBP452,979 for the period to 31 December 2016.
As at 31 December 2017, the Group's cash balances were
GBP1,160,741 (31 December 2016: GBP493,693).
Cameron Parry, Chief Executive Officer of Lionsgold Limited,
commented:
"Lionsgold transformed in its size and capacity during the
period ended 31 December 2017. During the period, it increased its
operational input and ownership position across its three
divisions: India Gold, Fintech Gold and Finland Gold and achieved
through equity capital raisings at market price structured with
warrants priced at significant premiums, a robust cash position
with access to further capital, to execute its strategic plans in
2018.
"Lionsgold has direct exposure to the Indian market via our
mining interest and the global banking industry through the
development of Goldbloc - the digital gold currency to be utilised
in bank accounts. It is an exciting chapter Lionsgold is entering
and we look forward to reporting on the Company's many business
opportunities and developments throughout the course of the
year."
For further information, please contact :
Lionsgold Limited Tel: +44 (0) 20 7397 2880
Cameron Parry (Chief Executive Officer)
Adam Ronaldson (Chief Financial Officer)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 113 394
6600
Tim Feather
Chris Viggor
Smaller Company Capital Limited (Broker) Tel: +44 (0) 20 3651
2911
Rupert Williams
Jeremy Woodgate
Lionsgold Limited and its controlled entities
Condensed consolidated Statement of Comprehensive Income
(unaudited)
for the six months ended 31 December 2017
Six months Six months Year ended
ended 31 ended 31 30 June
December December 2017
2017 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
Salaries and wages (83,249) (144,375) -
Share Based Payments (40,000) (55,000) -
Other administrative expenses (174,242) (237,931) (699,569)
Loss from operating activities (297,491) (437,306) (699,569)
Finance income 43 383 799
Finance costs (547) - (75,878)
Net finance income/ (costs) (504) 383 75,079
Share of loss of associates (81,656) (16,056) (87,608)
Loss before tax (379,651) (452,979) (862,256)
Income tax - - -
Loss for the period/ year (379,651) (452,979) (862,256)
Other comprehensive loss
Items that may be reclassified
subsequently to profit
or loss
Foreign exchange translation
variances (87,597) (11,096) (2,885)
Foreign exchange loss on
disposal of subsidiary (75,382) - -
Total comprehensive loss
for the period/ year (542,630) (464,075) (865,141)
Total comprehensive loss
attributable to:
Owners of the parent (531,129) (464,075) (865,141)
Non-controlling interest (11,501) - -
Basic and diluted loss
per share (GBP) (0.15) (0.24) (0.44)
All results are derived from continuing activities.
Lionsgold Limited and its controlled entities
Condensed consolidated Statement of Financial Position
(unaudited)
as at 31 December 2017
31 December 31 December 30 June
2017 2016 2017
GBP GBP GBP
Non-current assets (unaudited) (unaudited) (audited)
Investment in associates 3,426,122 2,997,606 2,926,054
Intangible assets 215,844
Investments - 87,381 539,945
Total non-current assets 3,641,966 3,084,987 3,465,999
Current assets
Trade and other receivables 44,139 1,977 3,537
Prepayments and other
assets 3,935 11,529 831
Other receivables - 135,233 -
Term deposits - 166,142 71,435
Cash and cash equivalents 1,160,741 446,241 493,693
Total current assets 1,208,815 761,122 569,496
Total assets 4,850,781 3,846,109 4,035,495
Current liabilities
Trade and other payables 115,510 118,640 77,624
Total current liabilities 115,510 118,640 77,624
Total liabilities 115,510 118,640 77,624
Total net assets 4,735,271 3,727,469 3,957,871
Equity
Share capital - - -
Share premium 25,773,402 23,957,858 24,588,942
Reserves (92,495) 68,106 47,743
Accumulated losses (21,046,964) (20,298,495) (20,678,814)
Non controlling interest 101,328 - -
Total equity 4,735,271 3,727,469 3,957,871
Lionsgold Limited and its controlled entities
Condensed consolidated Statement of Changes in Equity
for the six months ended 31 December 2017
Share Share Share Foreign exchange Accumulated Total equity
capital premium based translation losses
payment reserve
reserve
GBP GBP GBP GBP GBP GBP
Balance at 1 July
2016 7,440,546 15,690,724 28,958 (11,286) (19,845,516) 3,303,426
Loss for the period - - - - (452,979) (452,979)
Other comprehensive
loss - foreign exchange
translation variances - - - (11,096) - (11,096)
Total comprehensive
loss for the period - - - (11,096) (452,979) (464,075)
Issue of ordinary
shares - 996,600 - - - 996,600
Cost of issue - (108,482) - - - (108,482)
Issue of warrants - (61,530) 61,530 - - -
Reallocation of share
capital to share premium
following designation
of shares to no par
value (7,440,546) 7,440,546 - - - -
Total contributions
by and distributions
to owners (7,440,546) 8,267,134 61,530 - - 888,118
Balance at 31 December
2016 - 23,957,858 90,488 (22,382) (20,298,495) 3,727,469
Lionsgold Limited and its controlled entities
Condensed consolidated Statement of Changes in Equity
for the six months ended 31 December 2017
Share Share Share Foreign Accumulated Non-controlling Total equity
capital premium based exchange losses interest
payment translation
reserve reserve
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
July
2017 - 24,588,942 61,914 (14,171) (20,678,814) - 3,957,871
Loss for the
period - - - - (368,150) (11,501) (379,651)
Other
comprehensive
loss - foreign
exchange
translation
variances - - - (87,597) - - (87,597)
Foreign
exchange loss
on disposal of
subsidiary - - - (75,382) - - (75,382)
Total
comprehensive
loss for the
period - - - (162,979) (36,150) (11,501) 542,630
Issue of
ordinary
shares - 1,171,000 - - - - 1,171,000
Cost of issue - (3,800) - - - - (3,800)
Issue of
warrants - (2,850) 42,850 - - - 40,000
Exercise of
warrants - 7,770 (7,770) - - - -
Unwinding of
fair
value of
unexercised
warrants - 12,340 (12,340) - - - -
Acquisition of
subsidiary - - - - - 112,829 112,829
Total
contributions
by and
distributions
to owners - 1,184,460 22,740 - - 112,829 1,320,029
Balance at 31
December
2017 - 25,773,402 84,654 (177,150) (21,046,964) 101,328 4,735,271
Lionsgold Limited and its controlled entities
Condensed consolidated Statement of Cash Flows
For the six months ended 31 December 2017
Six months Six months Year ended
ended 31 ended 31 30 June
December December 2017
2017 2016
GBP GBP GBP
(unaudited) (unaudited) (audited)
Cash flows from operating
activities
Loss for the period (379,651) (452,979) (862,256)
Adjustments for:
Share of loss of associate 81,656 16,056 87,608
Share-based payment 40,000 55,000 55,107
Net finance income (504) (383) (303)
Foreign exchange variances 247 (13,552) (4,606)
Operating loss before
changes in working
capital and provisions (258,252) (395,858) (724,450)
Change in trade and
other receivables (12,073) 1,760 199
Change in other current
assets (3,104) 14,689 25,387
Change in trade and
other payables 37,886 (26,356) (67,372)
Net Cash used in operating
activities (235,543) (405,765) (766,236)
Cash flows from investing
activities
Interest received 43 383 303
Funds withdrawn from
term deposit 71,435 119,507 214,213
Loan advancement for
future investment - (135,233) -
Payments for investment
acquisition (135,768) (45,781) (362,346)
Acquisition of subsidiary,
net of cash (261,583)
Net cash used in investing
activities (325,873) (61,124) (147,830)
Cash flows from financing
activities
Proceeds from issues
of shares 1,230,999 900,000 1,450,000
Cost of issue (3,800) (108,482) (163,120)
Net cash from financing
activities 1,227,199 791,518 1,286,880
Net decrease in cash
and cash equivalents 665,783 324,629 (372,814)
Foreign exchange gain/(loss)
on cash balances 1,265 2,454 1,721
Cash and cash equivalents
at 1 July 493,693 119,158 119,158
Cash and cash equivalents
at 30 June
(Excludes term deposits
of nil)
(31 December 2016:
GBP166,141) 1,160,741 446,241 493,693
Lionsgold Limited and its controlled entities
Notes to the condensed consolidated interim financial
statements
For the six months ended 31 December 2017
1. Basis of preparation and changes to the Group's accounting policies
Basis of Preparation:
These unaudited condensed consolidated half yearly financial
statements have been prepared in accordance with the AIM Rules for
Companies. As permitted, the Group has chosen not to adopt IAS 34
"Interim Financial Statements" in preparing this interim financial
information. The unaudited condensed consolidated half yearly
financial statements should be read in conjunction with the annual
financial statements for the year ended 30 June 2017, which have
been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union.
The unaudited condensed consolidated half yearly financial
statements do not constitute statutory financial statements within
the meaning of the Guernsey (Companies) Law, 2008, have been
prepared on a going concern basis in accordance with the
recognition and measurement criteria of IFRSs. Statutory financial
statements for the year ended 30 June 2017 were approved by the
Board of Directors on 6 December 2017 and delivered to the
Registrar of Companies. The report of the auditor on those
financial statements was unqualified.
The same accounting policies, presentation and methods of
computation are followed in these unaudited condensed consolidated
half yearly financial statements as were applied in the preparation
of the Group's annual audited financial statements for the year
ended 30 June 2017.
The preparation of unaudited condensed consolidated half yearly
financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period. Significant items subject to such
estimates are set out in the Group's Annual Report and Financial
Statements for the year ended 30 June 2017. The nature and amounts
of such estimates have not changed significantly during the interim
period.
These interim condensed consolidated financial statements were
approved by the Board of Directors in March 2018 and will be
available from the Company's website, www.lionsgold.com.
New standards, interpretations and amendments adopted by the
Group:
The accounting policies adopted in the preparation of the
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group's annual
consolidated financial statements for the year ended 30 June
2017.
2. Basis of preparation and changes to the Group's accounting policies
New standards, interpretations and amendments adopted by the
Group (continued)
Several other new standards and amendments apply for the first
time. However, they do not impact the annual consolidated financial
statements of the Group or the interim condensed consolidated
financial statements of the Group.
The following accounting standards and amendments have been
issued but are not yet effective for the financial year beginning 1
July 2017 and not early adopted:
Effective
Standard Impact on initial application date
-------------------- ------------------------------------------------------------------------------------ ----------
IAS 12 (Amendments) Income Tax Consequences of Dividends 1 January
2019
IAS 23 Borrowing Costs Eligible for Capitalisation 1 January
2019
IAS 28 Investment in Associates and Joint Ventures - Fair Value Measurement Clarification 1 January
& Long 2019
Term Interests
IFRS 3 (Amendments) Remeasurement of previously held interest for Business Combinations 1 January
2019
IFRS 9 Financial Instruments 1 January
2019
IFRS 15 Revenue from Contracts with Customers 1 January
2018
IFRS 16 Leases 1 January
2019
IFRS 2 (Amendments) Classification and measurement of share-based payment transactions 1 January
2018
Annual Improvements Annual Improvements to IFRS Standards 2014-2016 cycle 1 January
2018
IFRIC 22 IFRIC Interpretation 22 Foreign Currency transactions and advanced consideration 1 January
2018
IAS 40 (Amendments) Transfer of investment property 1 January
2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
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